Fixed Rate Loans – Secure Your Interest Rate
Fixed rates are another option when searching for a loan to suit your individual needs. They are a great option with term loans. We at AAFS find that fixed rate loan products are talked about a lot more when we go through interest rate movements. Fixed rate loans are a great option when you need to know in advance exactly what the repayments are going to be, without change, for a certain period of time.
How Long can I fix a loan for?
Traditionally the banks had 1 to 5 year terms but as competition grows a few of the major lenders now have fixed rates for up to 15 years.
Positives regarding fixed rates
Fantastic option for knowing your loan repayments for a set amount of years. Interest only or Principal and interest repayment. You can split your loan into a variable portion and a fixed portion. You can even have different loan terms for these split portions – say a 3 year rate for one portion of your loan and a 5 year rate for another portion. Some lenders offer small discounts from the advertised rates on Professional packages. There is a lot to talk about regarding fixed rates so please call us and we can assist you with your decision.
Negatives regarding fixed rates
This is where most fixed rates fall down. There are limitations with most lenders (but not all) regarding fixed rate pruducts. With most of the lenders there is limited amounts that can be repaid above the minimum payments. You may not be able to redraw any extra repayment during the fixed rate period. We at AAFS have the experiance and the knowledge to guide you through all of the banks product guidelines.